State

Tennessee short-term rental laws (2026)

Tennessee's Short-Term Rental Unit Act does something few state laws do: it tells cities whom they may not reach. If your property was already a short-term rental when an ordinance was enacted, that ordinance does not apply to it.^[1]

Every rule below links to the official source it comes from, verified October 1, 2026.

Nashville skyline seen across the Cumberland River in daylight

Is Airbnb legal in Tennessee?

Legal, and older listings are protected

A Tennessee city may require a permit. But a property already rented before the ordinance keeps the older rules until one of four events ends that status.

3 official sources · verified October 1, 2026

Photo: Matthew Jungling on Unsplash

PermitRequired · City permit where one exists
Primary residenceVaries
Number on listingNot required
Night capNone. Under 30 nights is the definition

Tennessee short-term rental laws

Tennessee's Short-Term Rental Unit Act lets a city regulate short-term rentals, permit included, with one big exception. A property already rented short term when the ordinance was enacted keeps the rules that applied when it started. There are four ways to lose that protection. A sale or a transfer ends it. So do thirty continuous months without rental use, and so does a third breach of a generally applicable local law.^[1]

Every Tennessee rule, sorted by what it asks

Filter by topic. Each line carries the number of its official source, listed at the bottom of the page.

You must

Hold your city's permit where it runs a permitting or application process, since the use can be suspended for any period without one.[1]
Keep proof of when the property first went on the market as a rental. Legacy status turns on that date and on the permit or the tax filings that went with it.[1]
Collect the city room occupancy tax where one has been levied by ordinance.[3]

You must not

Do not let the property break a generally applicable local law three separate times: that is the threshold at which the city may end the use.[1]
Do not leave the property off the rental market for thirty continuous months if you are relying on legacy status, because that gap ends it.[1]

Not required

No state license exists for a short-term rental unit in Tennessee.[1]
No state rule requires you to live at the property, though a city ordinance may.[1]

Stays of 30 days or more in Tennessee

Tennessee allows short-term rentals in certain zones only. A stay of 30 consecutive days or more is not a short-term rental under its rules.^[1]
At that length, a guest can gain tenant rights, and lodging tax and insurance work differently.

Mid-term rentals: what changes at 30 days

Occupancy tax in Tennessee

Tennessee cities adopt their room occupancy tax by ordinance. Levied under T.C.A. § 67-4-1402, the city rate tops out at four percent. Public Chapter 372, passed in 2025, adds a combined ceiling of 8% for the city and the county. Cities already taxing above it are grandfathered.^[3]
Where the tax was levied after July 1, 2021, the revenue has to be designated for the promotion of tourism and tourism development.^[3]

Tennessee occupancy tax

Cities in this state

Short-term rental rules in 10 Tennessee cities

Ranked by the share of housing the Census counts as seasonal. Places the Census figure does not cover come first.

Short-term rental rules by city in Tennessee
City	Local rule	Primary residence	Night cap	Seasonal homes per 1,000
Nashville short-term rental rules	Restricted by zone	Varies	None published
Gatlinburg short-term rental rulesSevier County, TN	Permit required	Not published	Under 30 continuous days is the definition	340
Townsend short-term rental rulesBlount County, TN	Permit required	Not published	None, with occupancy capped at 12 people	288
Sevierville short-term rental rulesSevier County, TN	Permit required	Not published	Under 30 continuous days is the definition	32
Kingsport short-term rental rulesSullivan and Hawkins County, TN	No city ordinance	Not published	None in the city code	20
Bristol short-term rental rulesSullivan County, TN	No city ordinance	Not published	No limit in the city code	16
Chattanooga short-term rental rulesHamilton County, TN	Allowed by zone	Varies	None, but a 25% density cap applies	9
Knoxville short-term rental rulesKnox County, TN	Permit required	Varies	Under 30 continuous days is the definition	9
Johnson City short-term rental rulesWashington, Sullivan and Carter County, TN	No city ordinance	Not required	None: the city publishes no land use rule	8
Memphis short-term rental rulesShelby County, TN	Capped	Not published	No night cap, but 5% of units in a multi-family building	4

Five jurisdictions, same questions

The Tennessee column comes from the official sources on this page. The other columns show the headline rule from each WonderGuest page. Open a page for the full detail.

Short-term rental rules in Tennessee compared with other jurisdictions
Question	Tennessee	North Carolina	Georgia	Virginia	Missouri
Permit	RequiredCity permit where one exists	Not requiredNo registration, zoning approval instead	RequiredLocal license where your city or county has one	Not requiredNone from the state. Localities may require registration	Not requiredState retail sales license, free. Cities add their own
Primary residence	Varies	Varies	Varies	Varies	Varies
Night cap	None. Under 30 nights is the definition	None. Wilmington's cap was struck down	None in the state tax law	None in state law	Only where local zoning sets one
Number on listing	Not required	Not required	Not required	Not required	Not required
Where allowed	City zoning decides, legacy status aside	Districts the city names for the use	Wherever local rules allow it	Wherever local zoning allows it	Where the city's zoning allows it
Occupancy tax	City tax up to 4%, 8% with the county	4.75% state plus local and occupancy tax	$5 a night plus local tax up to 8%	Sales tax of 5.3% to 7% by locality	4.225% state sales tax, plus local taxes
Fine without permit	Use suspended while unpermitted	No state penalty published	Set by your city or county	Up to $500 per violation if unregistered	Set by each city
		North Carolina short-term rental rules	Georgia short-term rental rules	Virginia short-term rental rules	Missouri short-term rental rules

Keep exploring

Coming up

What's changing

No change with an effective date appears in the official sources on this page as of October 1, 2026.

FAQ

Tennessee short-term rental questions

What is a short-term rental unit in Tennessee law?

A residential dwelling rented wholly or partially for a fee for less than thirty continuous days. Hotels, bed and breakfast establishments and bed and breakfast homestays are excluded by definition.^[1]

How do I lose legacy status?

Four ways. The property is sold, or it is transferred. It stops being used as a short-term rental for thirty continuous months. Or it has been in violation of a generally applicable local law three or more separate times.^[1]

Does a new city ordinance apply to a house I already rent out?

Not while legacy status holds. The rules in effect when the property began being used as a short-term rental are the rules that govern it. The Act supersedes conflicting municipal requirements.^[2]

How high can a Tennessee city set its occupancy tax?

Four percent where the tax rests on T.C.A. § 67-4-1402. Since Public Chapter 372 of 2025, the city and county rates together may not pass 8%. A city whose rate was already higher keeps it. A tax levied after July 1, 2021 must also be designated for tourism promotion and development.^[3]

Sources

Public Chapter 972, Acts of 2018, the Short-Term Rental Unit Act, Tennessee Secretary of State, read on September 20, 2026
Summary of the Short-Term Rental Unit Act, Municipal Technical Advisory Service, University of Tennessee, read on October 1, 2026
Room Occupancy Tax, municipal finance reference, Municipal Technical Advisory Service, University of Tennessee, read on October 1, 2026

This page is not legal advice. It summarizes the official sources listed on this page as they read on October 1, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.

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